Abbott Laboratories (ABT) said Wednesday that its second-quarter profit declined 2.1%, hampered by higher taxes. Adjusted profit and revenue topped Wall Street expectations, however, and the company boosted its full-year earnings forecast.

 

Shares rose before the opening bell Wednesday.

 

The generic drugmaker Mylan Inc. announced this week that it is buying Abbott’s generic-drugs business in developed markets for stock valued at about $5.3 billion. The deal is expected to close early next year.

 

For the period ended June 30, Abbott— which makes infant formula like Similac as well as medical devices and drugs— earned $466 million, or 30 cents per share. That compares with $476 million, or 30 cents per share, a year ago.

 

Taxes on earnings from continuing operations more than doubled to $277 million from $125 million.

 

Stripping out nonrecurring items, earnings were 54 cents per share. This beat the 51 cents per share analysts surveyed by FactSet predicted.

 

Revenue rose 1.9% to $5.55 billion from $5.45 billion, helped by strength overseas and in emerging markets. International sales comprise more than 70% of Abbott’s total sales. Emerging markets make up 40% of its total sales.

 

The revenue performance topped Wall Street’s estimate of $5.53 billion.

 

Abbott now foresees full-year earnings of $2.19 to $2.29 per share. Its prior outlook was for $2.16 to $2.26 per share. Analysts expect $2.20 per share.

 

Date: July 16, 2014

Source: Associated Press